# How UK Accountants Prepare Ecommerce and Marketplace Seller Records

**Research report. Prepared 5 August 2026. All statements reflect UK rules and practice as published at that date.**

Scope note: this report describes only the accountant's existing workflow, from the records a seller hands over to the point where accounts, tax returns, VAT returns or HMRC updates are submitted. It does not discuss products, tools that could be built, commercial opportunities or recommendations.

---

## How to read the evidence labels

Every material claim in this report carries one of these labels.

| Label | Meaning |
|---|---|
| **[Confirmed]** | Stated directly in HMRC/GOV.UK guidance, legislation, or official platform/software documentation, with a link |
| **[Interpretation]** | My reading of how a confirmed rule plays out in practice; reasonable but not stated in those words by the source |
| **[Practitioner]** | Reported by accountants, professional bodies or specialist software vendors writing for accountants. Credible but self-interested or unaudited in some cases |
| **[Anecdotal]** | Individual accountant accounts, forum posts, single-firm blogs. Illustrative only |
| **[Assumption]** | My working assumption where no source was found |
| **[Gap]** | Something I could not verify and which would need primary research (interviews, file reviews) to settle |

A second distinction runs through the whole report and matters a great deal:

| Category | What it means |
|---|---|
| **Legal requirement** | Something the seller or accountant must do or must keep, set by HMRC rules, tax legislation or company law |
| **Common practice** | What most accountants actually do, which usually goes beyond the legal minimum |
| **Good bookkeeping** | Optional discipline that makes the work reliable but is not itself required |
| **Management information** | Numbers produced for the seller's benefit, not for HMRC |
| **Professional judgement** | A decision with no single correct answer, where the accountant applies skill and takes responsibility |

---

## 1. Executive summary

**1.1 The core problem is that a marketplace payout is not a sale.** When Amazon, eBay, Etsy or TikTok Shop pays a seller, the money that lands in the bank is a net figure: gross sales, minus commission, minus fulfilment and postage charges, minus advertising, minus refunds, plus reimbursements, plus or minus money held back in reserve, and often converted from another currency. If the accountant simply treats the bank deposit as income, the sales figure is understated, every cost is invisible, and the VAT position is wrong. Specialist practitioners describe net deposits as the single largest source of misstatement in ecommerce accounts. **[Practitioner]** ([EcomCPA](https://ecomcpa.com/the-payout-reconciliation-gap-why-amazon-shopify-and-tiktok-shop-deposits-are-wrecking-ecommerce-books-in-2026/))

**1.2 So the accountant's central task is a translation job.** They take platform settlement data, break it back out into its parts, post those parts into accounting software or a spreadsheet, and then prove that the parts add back up to the money that actually arrived in the bank. Everything else in the workflow (intake, cleaning, queries, review, submission) exists to support that translation and to make it defensible if HMRC asks. **[Interpretation]**

**1.3 The records a seller supplies are usually incomplete, and completing them is the slow part.** Platform data is generally good at describing sales and platform fees, because the platform generated it. It says almost nothing about what the seller paid for the stock, what postage they bought outside the platform, what equipment or software they bought, or whether the money moving through a personal account is business or private. Those gaps have to be filled from bank statements, receipts, supplier invoices and direct questions to the seller. **[Interpretation]**, grounded in the HMRC record list at [What records to keep](https://www.gov.uk/self-employed-records/what-records-to-keep) **[Confirmed]**

**1.4 Legally, the seller owns the records and the accuracy of the return.** HMRC requires the business to keep records of all sales and income, all business expenses, VAT records if registered, and supporting evidence such as receipts for goods and stock, bank statements, sales invoices and till rolls. **[Confirmed]** ([GOV.UK](https://www.gov.uk/self-employed-records/what-records-to-keep)) The accountant prepares and submits, but the seller approves. Almost everything else described in this report is common practice or good bookkeeping rather than a legal requirement.

**1.5 Not every marketplace seller is in scope for anything.** Someone clearing out a wardrobe is generally not trading and generally has no tax to pay. Someone who buys or makes goods intending to sell at a profit probably is trading, and must tell HMRC once combined trading income passes the £1,000 trading allowance. Separately, personal possessions sold for more than £6,000 each can trigger Capital Gains Tax even where there is no trade. **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms)) A large early part of the accountant's job with small sellers is deciding which side of that line the client sits on, and that decision is professional judgement.

**1.6 Platform reporting to HMRC has changed the conversation but not the rules.** Digital platforms must collect, check and report seller details and income to HMRC annually by 31 January, with a de minimis for sellers with fewer than 30 goods sales and under about €2,000 in the year. HMRC is explicit that these reports do not replace the seller's own records or tax calculations, and that being reported does not automatically mean tax is owed. **[Confirmed]** ([Selling on a digital platform](https://www.gov.uk/guidance/selling-goods-or-services-on-a-digital-platform), [Reporting rules for digital platforms](https://www.gov.uk/guidance/reporting-rules-for-digital-platforms)) In practice these reports have pushed sellers towards accountants and given accountants a third-party figure to reconcile against. **[Interpretation]**

**1.7 Three compliance regimes drive the shape of the work.** Self Assessment for sole traders and partners; VAT once taxable turnover passes £90,000 on a rolling twelve-month basis or is expected to pass it within 30 days **[Confirmed]** ([GOV.UK](https://www.gov.uk/vat-registration/when-to-register)); and Making Tax Digital, which now applies to VAT-registered businesses and, from 6 April 2026, to sole traders and landlords with qualifying income over £50,000, dropping to £30,000 from April 2027 and £20,000 from April 2028. **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax)) Limited companies follow a separate track of statutory accounts and a Company Tax Return.

**1.8 Automation has moved the bottleneck rather than removed it.** Settlement tools such as A2X and Link My Books now post summarised, tax-coded journals per payout, and receipt capture tools such as Dext and Hubdoc read invoices into the ledger. **[Practitioner]** (see section 5) What remains manual is the judgement: is this trading, is this stock or drawings, which VAT treatment applies, is this expense wholly for the business, is this missing evidence acceptable, and what do we ask the client. **[Interpretation]**

**1.9 The unavoidable manual core, in one list.** Deciding trading status; separating personal from business activity; valuing stock and arriving at cost of goods sold; deciding VAT treatment on cross-border and platform-facilitated sales; handling missing receipts; explaining unmatched bank items; chasing the seller for context only they hold; and forming the final judgement that the accounts and return are right enough to sign. **[Interpretation]**

---

## 2. Seller records typically received

### 2.1 What comes from the marketplace or store

| Record | What it contains | Typical source | Notes |
|---|---|---|---|
| Settlement / payout report | The full breakdown behind one deposit: sales, refunds, each fee type, adjustments, reserves, transfer amount | Amazon Seller Central settlement reports; eBay payout reports; Etsy monthly statements; Shopify payouts | Amazon settlement flat files classify lines as Order or Refund transaction types **[Confirmed]** ([Amazon SP-API settlement reports](https://developer-docs.amazon.com/sp-api/docs/report-type-values-settlement)) |
| Date range transaction and summary report | Income, expenses, taxes and fund transfers over a chosen period, rather than per payout | Amazon Payments reports | The summary is a PDF overview; the detailed version is downloadable for spreadsheet use **[Confirmed]** ([Amazon Seller Central help](https://sellercentral.amazon.com/help/hub/reference/external/G200989190?locale=en-US)) |
| Transaction report (CSV) | Every account event for a date range: transaction date, order number, buyer, payout date, fees | eBay Seller Hub, Payments tab | **[Confirmed]** ([eBay: reconciling your sales transactions](https://www.ebay.com/help/selling/fees-credits-invoices/reconciling-ebay-sales-transactions?id=4847)) |
| Monthly financial statement (PDF) | Summary of orders, claims, refunds, disputes, payouts, fees and credits for the month | eBay Seller Hub | **[Confirmed]** (same source) |
| Monthly statement CSV | All activity in the payment account for a month, including fees and taxes applied to sales | Etsy Shop Manager, Monthly statements, Generate CSV | **[Confirmed]** ([Etsy Help](https://help.etsy.com/hc/en-us/articles/115015747228-How-to-Manage-Your-Payment-Account)) |
| Sold orders / sold transactions spreadsheet | Order-level detail: item, quantity, price, postage charged, buyer location, date | Etsy, eBay, Amazon order reports | **[Confirmed]** ([Etsy Help](https://help.etsy.com/hc/en-us/articles/360000343328-How-to-Download-a-Spreadsheet-of-Your-Sold-Transactions)) |
| Digital sales reporting pack | The figures the platform reported about the seller to HMRC, as a PDF plus the underlying CSV | eBay Payments tab, Taxes section | **[Confirmed]** ([eBay UK digital sales reporting](https://www.ebay.co.uk/help/account/regulatory/sales-reporting/uk-digital-sales-reporting?id=5454)) |
| Fee invoices / VAT invoices from the platform | Commission, fulfilment, storage, advertising, subscription, with VAT treatment shown | Amazon, eBay, Etsy billing sections | Amazon's UK fee VAT treatment changed on 1 August 2024, see 2.6 |
| Advertising statements | Sponsored ads spend, sometimes billed separately from selling fees | Amazon Ads, Etsy Ads, Meta, Google | ICAEW warns some ad billing comes from Luxembourg rather than a UK VAT-registered entity, changing the VAT position **[Practitioner]** ([ICAEW](https://www.icaew.com/technical/practice-resources/support-for-business-advisers/develop-advisory-services/advising-on-ecommerce)) |

### 2.2 What comes from money movement

- **Bank statements** for the business account, and often for one or more personal accounts where trading has run through them. Required by HMRC as supporting evidence. **[Confirmed]** ([GOV.UK](https://www.gov.uk/self-employed-records/what-records-to-keep))
- **Payment processor records**: PayPal, Stripe, Klarna, SumUp, and any card terminal used at fairs or markets. These carry their own fees and their own timing.
- **Payout statements** that tie a settlement to a specific bank credit, including partial or split payouts.
- **Credit card and finance statements** where stock or equipment was bought on credit.
- **Cash records**, particularly for handmade sellers and resellers who also trade at car boot sales, craft fairs and markets. Till rolls and bank paying-in slips are named by HMRC as acceptable evidence. **[Confirmed]** (same source)

### 2.3 What comes from purchases and costs

- **Stock purchase invoices**: wholesalers, liquidation pallets, auction houses, charity shops, private purchases, overseas suppliers.
- **Import documents**: commercial invoices, C79 import VAT certificates, freight and customs agent invoices, duty. ICAEW notes that goods sourced from China often involve staged payments in US dollars over months, which complicates both cost and cut-off. **[Practitioner]** ([ICAEW](https://www.icaew.com/technical/practice-resources/support-for-business-advisers/develop-advisory-services/advising-on-ecommerce))
- **Postage and packaging**: Royal Mail, Evri, click-and-drop accounts, franking, packaging materials, platform-purchased labels which appear inside settlements rather than as separate invoices.
- **Consumables and materials** for handmade sellers: fabric, yarn, beads, wood, resin, printing, often bought in small amounts from many suppliers, sometimes from other marketplaces.
- **Overheads**: subscriptions, software, phone, storage unit, home-as-office, insurance, professional fees, courses.
- **Equipment**: printers, cutting machines, cameras, laptops, shelving.
- **Receipts and expense evidence** generally, which is where completeness most often breaks down. **[Interpretation]**

### 2.4 Stock and inventory information

- Opening and closing stock counts, or lack of them.
- Cost per unit, or a total spend figure with no unit breakdown.
- Platform inventory reports (units on hand at a fulfilment centre, units lost or damaged, reimbursements).
- Under traditional (accruals) accounting HMRC expressly expects a stock value at the year end to be recorded. **[Confirmed]** ([GOV.UK](https://www.gov.uk/self-employed-records/what-records-to-keep)) Under the cash basis, which has been the default for sole traders and partnerships since 2024-25, stock is generally relieved when paid for rather than carried forward. **[Confirmed]** on the default point ([GOV.UK](https://www.gov.uk/simpler-income-tax-cash-basis/cash-basis-changes-from-the-2024-to-2025-tax-year)); **[Interpretation]** on the practical consequence for marketplace sellers.

### 2.5 VAT and prior-year records

- VAT registration certificate, effective date, scheme (standard, flat rate, cash accounting, margin scheme for second-hand goods).
- Previously filed VAT returns and the workings behind them.
- Prior year accounts and tax returns, capital allowances pools, brought-forward losses.
- Any HMRC correspondence, including nudge letters generated from platform reporting data. **[Anecdotal]** on the prevalence of nudge letters.

### 2.6 A live example of why fee data must be read carefully

From 1 August 2024, Amazon changed the entity billing UK seller fees. Fees previously came from Amazon Services Europe S.à r.l., which had no UK establishment, so VAT-registered sellers applied the reverse charge. From that date fees are billed by Amazon EU S.à r.l. through its UK branch, so UK VAT at 20% is charged directly on referral fees, FBA fees and other selling fees. **[Practitioner]** ([Armstrong Watson](https://www.armstrongwatson.co.uk/news/2024/06/new-amazon-vat-charges-what-uk-sellers-need-know), [A2X](https://www.a2xaccounting.com/blog/amazon-vat-changes-august-2024))

Why it matters to the workflow: any mapping, template or spreadsheet built before that date, and any period straddling it, produces the wrong VAT treatment unless the accountant intervenes. This is a good illustration of the general point that platform mechanics change without notice to the accountant. **[Interpretation]**

---

## 3. Accountant intake and connection methods

### 3.1 Getting authorised first

Before any data flows, the accountant needs HMRC authorisation. For Self Assessment this is traditionally form 64-8 or an online authorisation; for Making Tax Digital services the client approves the agent through a digital handshake, and the agent must hold an agent services account and sign the client up for MTD for Income Tax. **[Confirmed]** ([Authorise an agent](https://www.gov.uk/guidance/authorise-an-agent-to-deal-with-certain-tax-services-for-you), [Sign up your client for MTD for Income Tax](https://www.gov.uk/guidance/sign-up-your-client-for-making-tax-digital-for-income-tax))

Anti-money-laundering identity checks and an engagement letter run alongside this in any regulated practice. **[Interpretation]**; the underlying AML obligation is a legal requirement for supervised firms.

### 3.2 How records physically arrive

| Route | What typically comes this way | Practical characteristics |
|---|---|---|
| **Email attachments** | CSV exports, PDF statements, photographed receipts | Most common with small sellers. Version control is poor, files get lost in threads, and sensitive data sits in inboxes **[Interpretation]** |
| **Client portal** | Requested document lists, signed approvals, final accounts | Used by mid-size and larger practices; gives an audit trail of what was asked and when it arrived **[Interpretation]** |
| **Shared drive** (Google Drive, Dropbox, OneDrive) | Bulk exports, folders of receipts | Convenient, but folder discipline decays and duplicates accumulate **[Anecdotal]** |
| **Direct platform export by the accountant** | Settlement and transaction reports, pulled using client-granted access | Removes the risk of the client exporting the wrong date range **[Interpretation]** |
| **Open banking bank feeds** | Daily automatic bank and card transactions into Xero, QuickBooks, Sage, FreeAgent | Standard practice; feeds can break, duplicate or miss days, so opening and closing balances must still be checked **[Interpretation]** |
| **Marketplace connectors** | Summarised settlement journals or invoices posted straight into the ledger | A2X, Link My Books, Taxomate and similar. See section 5 |
| **Receipt capture / OCR** | Purchase invoices and receipts read into the ledger with the image attached | Dext, Hubdoc, AutoEntry. Dext also flags likely matches to already-reconciled bank lines, which helps prevent duplicates **[Practitioner]** ([comparison sources](https://eightx.co/blog/dext-vs-hubdoc-receipt-capture)) |
| **Spreadsheets** | The seller's own records, or the accountant's working file | Still central. HMRC accepts spreadsheets as digital records for MTD provided bridging software submits the figures **[Confirmed]** ([GOV.UK MTD for Income Tax](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax)) |
| **APIs** | Direct pulls from platforms, used mostly by specialist ecommerce firms | eBay, Amazon and Shopify all publish finance APIs **[Confirmed]** ([eBay Finances API](https://developer.ebay.com/api-docs/sell/finances/overview.html)) |
| **Carrier bag of paper** | Receipts, bank statements, handwritten notes | Still real, particularly for older resellers and market traders **[Anecdotal]** |

### 3.3 Where information is already lost at this stage

- The seller exports the wrong report, or the wrong date range, so the file cannot be tied to a period. Amazon date range reports run from 12:00am on the first date to 11:59pm on the last, in local time, which is easy to get wrong at a period boundary. **[Confirmed]** on the report behaviour ([Amazon help](https://sellercentral.amazon.com/help/hub/reference/external/G200989190?locale=en-US)); **[Interpretation]** on the error.
- Platforms limit how far back reports can be downloaded, so a late-arriving client may simply not be able to retrieve early-period data. **[Gap]**: limits vary by platform and change, and I did not verify current retention windows for each.
- Personal-account trading means the accountant sees only the net effect, not the underlying activity.
- Cash sales at fairs and markets leave no trace unless the seller recorded them at the time.
- Receipts for small purchases were never kept.

---

## 4. End-to-end preparation workflow

### 4.1 The lifecycle, in one view

```mermaid
flowchart TD
    A[Seller activity and context<br/>what was sold, why, from where] --> B[Marketplace records<br/>orders, fees, refunds, settlements]
    B --> C[Payouts and bank transactions<br/>net deposits, timing, currency]
    A --> D[Supporting evidence<br/>stock invoices, postage, receipts]
    C --> E[Accountant intake and triage<br/>completeness and scope check]
    D --> E
    E --> F[Processing<br/>clean, categorise, post]
    F --> G[Reconciliation<br/>settlements to bank, control accounts]
    G --> H[Exceptions and seller queries<br/>only the seller can answer]
    H --> F
    G --> I[Review and approval<br/>accountant review then seller sign-off]
    I --> J[Working papers<br/>ledgers, trial balance, reconciliations]
    J --> K[Outputs<br/>accounts, tax computation, VAT return,<br/>Self Assessment, CT600, MTD updates]
    K --> L[Submission to HMRC / Companies House<br/>and retention of evidence]
```

**Textual fallback, same relationships in order:**

1. Seller activity and context feeds both the marketplace records and the supporting evidence.
2. Marketplace records produce payouts, which appear as bank transactions.
3. Payouts and supporting evidence both arrive at accountant intake and triage.
4. Triage feeds processing (cleaning, categorising, posting).
5. Processing feeds reconciliation.
6. Reconciliation throws off exceptions, which become seller queries; answers loop back into processing.
7. Reconciliation, once clean, feeds review and approval.
8. Review produces working papers.
9. Working papers produce the final outputs.
10. Outputs are submitted and the evidence is retained.

### 4.2 Stage by stage

#### Stage 1: Seller activity and context

| Aspect | Detail |
|---|---|
| **Information required** | What is actually being sold, where it is bought or made, which platforms are used, whether there are non-platform sales, whether stock is held, whether anyone is employed, whether goods cross borders, whether the seller has other income |
| **Responsible** | Seller, prompted by the accountant's onboarding questionnaire |
| **Systems** | Questionnaire, onboarding call, practice management system |
| **Common errors** | Forgetting a second platform or a dormant shop; not mentioning a personal account used for trading; not mentioning goods stored or shipped from overseas; describing a hobby as a business or the reverse |
| **Evidence retained** | Engagement letter, onboarding notes, AML identity records |
| **Loss and delay points** | Anything the seller does not think is relevant never gets mentioned |
| **Judgement** | Is this trading at all? HMRC's test is that you are likely trading if you buy or make goods to sell at a profit, and unlikely to be if you are selling your own personal items **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/selling-goods-or-services-on-a-digital-platform)). Applying that to a person who started by clearing a loft and drifted into buying stock is genuine professional judgement |

#### Stage 2: Marketplace records

| Aspect | Detail |
|---|---|
| **Information required** | Settlement or payout reports covering the whole period with no gaps; order reports; fee invoices; advertising statements; refund and dispute records |
| **Responsible** | Seller to provide access or exports; accountant to specify exactly which report and which dates |
| **Systems** | Seller Central, Seller Hub, Etsy Shop Manager, Shopify admin, connector tools, APIs |
| **Common errors** | Wrong report chosen; date range not aligned to the accounting period; settlements missing at the start or end; one platform omitted; report downloaded in a different currency or timezone |
| **Evidence retained** | The raw export files themselves, saved unedited, plus the cleaned working copy |
| **Loss and delay points** | Platform download limits; reports that summarise rather than itemise; changes to report formats between periods |
| **Judgement** | Whether summarised platform data is sufficient evidence, or whether order-level detail is needed (for example to split UK from non-UK sales for VAT) |

#### Stage 3: Payouts and bank transactions

| Aspect | Detail |
|---|---|
| **Information required** | Full bank statements for every account used; payment processor statements; currency conversion detail |
| **Responsible** | Seller provides; accountant connects feeds |
| **Systems** | Open banking feeds into Xero, QuickBooks, Sage, FreeAgent; CSV imports; PDF statements |
| **Common errors** | Missing months; feed gaps; duplicated transactions where a feed and a manual import overlap; personal accounts omitted; a PayPal balance treated as a bank account and then double-counted against the platform record |
| **Evidence retained** | Statements, feed reconciliation to opening and closing balances |
| **Loss and delay points** | Bank feeds that silently stop; closed accounts the seller cannot now export |
| **Judgement** | Which accounts are in scope for the business at all |

#### Stage 4: Supporting evidence

| Aspect | Detail |
|---|---|
| **Information required** | Stock purchase invoices, postage records, import documents, expense receipts, asset purchase invoices |
| **Responsible** | Seller; this is legally the seller's record-keeping obligation **[Confirmed]** ([GOV.UK](https://www.gov.uk/self-employed-records/what-records-to-keep)) |
| **Systems** | Dext, Hubdoc, AutoEntry, email, shared folders, shoeboxes |
| **Common errors** | Receipts missing entirely; receipts for personal items included; the same invoice submitted twice, once photographed and once emailed; no evidence at all for cash purchases of second-hand stock |
| **Evidence retained** | Scanned images attached to ledger entries, which is common practice rather than a legal requirement in that specific form |
| **Loss and delay points** | The receipt that was never kept cannot be recreated |
| **Judgement** | Whether an expense with no receipt can still be claimed on other evidence, and whether an expense is wholly and exclusively for the business |

#### Stage 5: Accountant intake and triage

| Aspect | Detail |
|---|---|
| **Information required** | A completeness check: do we have every platform, every month, every bank account, and a plausible relationship between the three? |
| **Responsible** | Accountant or bookkeeper |
| **Systems** | Checklist, practice management workflow, a first-pass spreadsheet |
| **Common practice** | Comparing total platform gross sales to total money received, comparing the platform's own HMRC-reported figure to the seller's records, and testing whether turnover approaches the VAT threshold |
| **Common errors** | Starting processing before completeness is established, then having to redo work |
| **Evidence retained** | Triage notes, the list of records requested and received |
| **Loss and delay points** | This is usually where the first long delay happens, waiting on the client |
| **Judgement** | Whether the records are good enough to work from at all, or whether this is an incomplete-records job requiring reconstruction |

#### Stage 6: Processing (clean, standardise, categorise, enter)

This is the heart of the work. What has to happen to each element:

| Element | What the accountant does |
|---|---|
| **Marketplace sales** | Record gross sales, not the net deposit. Split by country or VAT rate where the seller is VAT-registered |
| **Platform fees** | Record as expenses in their own categories (commission, fulfilment, storage, closing fees, subscriptions) with the correct VAT treatment for the billing entity and date |
| **Refunds** | Record against sales, in the period they occurred, not netted invisibly into the payout |
| **Postage and shipping** | Split between postage charged to the customer (income) and postage cost paid (expense), including labels bought inside the platform |
| **Advertising** | Recorded gross, with VAT treatment checked against the billing entity |
| **Discounts and promotions** | Recorded so that gross sales and the discount are both visible, rather than only the net |
| **Chargebacks and disputes** | Recorded as they arise, with any related fee separated |
| **Reserves and holds** | Money withheld by the platform is not yet in the bank but is owed to the seller. Common practice is to hold it as a receivable or clearing balance until released **[Practitioner]** ([A2X support](https://support.a2xaccounting.com/en/articles/9566245-amazon-vat-changes-for-uk-eu-sellers-from-1-august-2024) and vendor documentation generally) |
| **Adjustments and reimbursements** | Platform compensation for lost or damaged stock is income, and needs its own category rather than being buried in sales |
| **Payouts** | Recorded as a transfer from the platform clearing account to the bank, not as income |
| **Bank transactions** | Matched to the postings above; anything left over is investigated |

| Aspect | Detail |
|---|---|
| **Responsible** | Bookkeeper or junior, reviewed by the accountant |
| **Systems** | Xero, QuickBooks Online, Sage, FreeAgent; connectors; spreadsheets for anything the connector cannot handle |
| **Common errors** | Net deposit posted as sales; fees omitted so margin looks impossible; refunds double-counted; VAT applied to the wrong element; personal spending coded as business |
| **Evidence retained** | The ledger itself, the connector's own settlement reports, and the working spreadsheet |
| **Loss and delay points** | Manual re-keying between a spreadsheet and the ledger, which both loses detail and breaks the digital link required under MTD |
| **Judgement** | Category choices; the VAT treatment of cross-border and platform-facilitated sales; whether a cost is stock, an asset, or an expense |

#### Stage 7: Reconciliation

Covered in detail in section 6.

#### Stage 8: Exceptions and seller queries

| Aspect | Detail |
|---|---|
| **Information required** | Answers only the seller has: what a payment was for, whether an item was personal, where stock came from, whether a transfer was drawings |
| **Responsible** | Accountant asks, seller answers |
| **Systems** | Query list in a spreadsheet or portal, email, phone |
| **Common errors** | Queries batched too late; vague questions that get vague answers; the seller guessing rather than checking |
| **Evidence retained** | The query list with answers, which becomes part of the file and the defence if HMRC ever challenges a figure |
| **Loss and delay points** | This is typically the single largest source of delay in the whole workflow **[Interpretation]** |
| **Judgement** | Whether an answer is plausible, and what to do when the seller genuinely cannot remember |

#### Stage 9: Review and approval

| Aspect | Detail |
|---|---|
| **Information required** | A complete draft, with reconciliations agreed and queries cleared |
| **Responsible** | A more senior person reviews the file; the seller then approves the output |
| **Systems** | Accounts production software, review checklists, e-signature |
| **Common practice** | Analytical review (does gross margin make sense, do fees look like a plausible percentage of sales, has anything moved oddly against last year) |
| **Evidence retained** | Review notes, the approved and signed accounts and returns |
| **Judgement** | Whether the numbers are supportable, and whether to raise a disclosure or a caveat |

#### Stage 10: Working papers and outputs

Covered in section 9.

---

## 5. Tools and systems used

### 5.1 Ledger and accounts

| Tool | Role |
|---|---|
| Xero, QuickBooks Online, Sage, FreeAgent | The general ledger for most UK small businesses and the place the VAT return and MTD updates are generated from |
| Accounts production software (Iris, TaxCalc, Taxfiler, BTCSoftware, CCH) | Turns the trial balance into statutory accounts and the tax computation, and files with HMRC and Companies House |
| Spreadsheets (Excel, Google Sheets) | Universal. Used for cleaning platform exports, VAT splits, stock and cost of goods sold workings, and as the digital record itself where bridging software submits the figures **[Confirmed]** that spreadsheets plus bridging software are acceptable under MTD ([GOV.UK](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax)) |

### 5.2 Marketplace connectors

A2X and Link My Books are the two most commonly named in UK ecommerce practice. Both read settlement data behind each payout and post a summarised, categorised entry into Xero, QuickBooks or Sage so that it matches the bank deposit, instead of pushing every individual order into the ledger. **[Practitioner]** ([A2X](https://www.a2xaccounting.com/ecommerce-accounting-hub/what-is-a2x), [Link My Books](https://linkmybooks.com/blog/what-is-a2x-accounting-software))

Vendor material describes further features: deferred settlement handling where a payout period straddles a month end, reconciliation and audit reports, daily posting for MTD purposes, cost of goods sold integrations, and built-in VAT and One Stop Shop rules. **[Practitioner]**, and note this is vendor marketing comparing vendors, so treat feature claims as indicative rather than independently verified. ([A2X vs Link My Books](https://www.a2xaccounting.com/link-my-books-vs-a2x))

Taxomate and Synder occupy similar ground. **[Practitioner]**

### 5.3 Document capture

Dext, Hubdoc and AutoEntry read purchase invoices and receipts using OCR and push them into the ledger with the source image attached. Dext additionally offers matching against already-reconciled bank lines, which reduces duplicate entry. **[Practitioner]** ([comparison review](https://eightx.co/blog/dext-vs-hubdoc-receipt-capture))

### 5.4 Practice infrastructure

- Practice management and workflow tools to track which client is at which stage.
- Client portals for secure document exchange and approval.
- Document management for retention of the file.
- The HMRC agent services account, which is the gateway for MTD filing and client sign-up. **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/sign-up-your-client-for-making-tax-digital-for-income-tax))

### 5.5 What the tools do not solve

**[Practitioner]** and **[Anecdotal]** sources converge on a consistent set of residual problems: platforms whose exports do not separate UK from non-UK sales cleanly, forcing an export to Excel and manual categorisation before upload; clients who have done their own bookkeeping and posted to the wrong accounts, muddled bank accounts and entered wrong dates, leaving reconciliation broken; and multi-jurisdiction sellers whose overseas VAT must be identified and excluded from the UK return or the client pays VAT twice. ([AccountingWEB Any Answers on eBay VAT splits](https://www.accountingweb.co.uk/any-answers/what-are-the-biggest-pains-of-e-commerce-clients), [AccountingWEB on client-prepared bookkeeping](https://www.accountingweb.co.uk/any-answers/online-bookkeeping-used-by-clients-nightmare), [ICAEW](https://www.icaew.com/technical/practice-resources/support-for-business-advisers/develop-advisory-services/advising-on-ecommerce))

**Source caveat:** the ICAEW pages cited render their content through a script-driven layout, so I captured their substance through search extracts rather than a full page fetch. The points attributed to ICAEW should be treated as accurately summarised but worth confirming against the live page before quoting formally. **[Gap]**

---

## 6. Reconciliation, evidence and review processes

### 6.1 What is being reconciled, and why it does not tie naturally

The bank shows one number. The platform shows dozens. The reconciliation proves they describe the same thing.

The classic causes of difference:

| Cause | What happens |
|---|---|
| **Netting** | The payout is already net of fees and refunds, so gross sales never appear in the bank at all |
| **Timing** | A sale on 30 March may not settle until early April, so the sale and the cash fall in different months or even different tax years. Practitioner guidance is to recognise revenue on settlement date rather than cash arrival, and carry the marketplace balance as a receivable **[Practitioner]** ([EcomCPA](https://ecomcpa.com/the-payout-reconciliation-gap-why-amazon-shopify-and-tiktok-shop-deposits-are-wrecking-ecommerce-books-in-2026/)) |
| **Batching** | One bank credit can cover many orders, and sometimes several settlement periods |
| **Reserves and holds** | The platform keeps money back, so the payout is less than the settlement total. Practitioner practice is to carry it as a receivable that clears when released **[Practitioner]** |
| **Refunds and chargebacks** | Reduce a later payout for a sale recorded earlier |
| **Currency** | Foreign currency sales converted at the platform's rate, with a difference against the accounting rate |
| **Split payouts** | The platform pays in two tranches, or to two different accounts |
| **Bank feed noise** | Duplicates, missing days, or a feed that reconnected and re-imported |

### 6.2 The reconciliation the accountant actually performs

**Common practice**, not a legal requirement in this specific form:

1. Post each settlement in full to a platform clearing account: gross sales in, every fee and refund out, reserve movements shown separately.
2. The balancing figure on that clearing account should equal the payout.
3. Match the payout to the bank credit.
4. Whatever remains on the clearing account at period end should be explainable: money in transit, reserves not yet released, or settlements not yet paid.
5. Investigate anything that does not fit.

A practitioner-described monthly rhythm: settlements posted and mapping verified in the first couple of days after month end; bank reconciliation of all platform deposits; inventory reconciled against platform reports with cost of goods sold adjusted; then profit and loss review by channel. **[Practitioner]** ([eightx](https://eightx.co/blog/xero-bookkeeping-amazon-fba))

Unidentified balances are typically reserves or holds that either clear in a later settlement or are cleared by journal. **[Practitioner]** ([Synder](https://synder.com/blog/how-to-reconcile-amazon-transactions-in-xero/), [Link My Books help centre](https://help.linkmybooks.com/en/articles/8081615-how-to-reconcile-amazon-settlement-invoices-with-bank-deposits-in-xero))

### 6.3 Finding duplicates and differences

| Problem | How it is usually caught |
|---|---|
| **Duplicate sales** | The same sales entered once via a connector and once via a manual import or the bank feed. Caught by comparing total posted sales to the platform's own gross sales total |
| **Duplicate expenses** | The same invoice captured by OCR and also entered manually. Caught by supplier-and-amount review, and by matching tools |
| **Missing sales** | A platform or a month omitted. Caught by comparing to the platform's HMRC-reported figures and by looking for unexplained bank credits |
| **Unexplained bank items** | Anything the ledger cannot account for goes on the query list |
| **Mixed personal and trading activity** | Caught by scanning personal accounts for platform credits and by reviewing anything that looks like household spending |
| **Ambiguous classification** | Flagged rather than guessed, and taken to the seller |

### 6.4 Evidence and how long it is kept

- **Legal requirement:** Self Assessment records generally must be kept, and digital records under MTD for Income Tax must be kept for at least five years after the 31 January submission deadline for that tax year. **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/keep-digital-records))
- **Legal requirement:** VAT-registered businesses must keep the specified VAT records digitally and preserve them, with data moving between software by digital link rather than manual re-keying. **[Confirmed]** ([VAT Notice 700/22](https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat), [Record keeping VAT Notice 700/21](https://www.gov.uk/guidance/record-keeping-for-vat-notice-70021))
- **Common practice:** the accountant keeps their own file (working papers, reconciliations, query lists, approvals) for professional and regulatory reasons even though the underlying business records legally belong to the client.

### 6.5 Review

**Common practice:** a second person reviews before anything is sent to the client or HMRC. Typical review tests are analytical: does gross margin make sense for this type of goods, are platform fees a plausible percentage of sales, does drawings-plus-profit support the seller's apparent lifestyle, has anything moved sharply against the prior year without explanation, and do the reconciliations actually reconcile.

---

## 7. Manual and judgement-dependent work

### 7.1 Still manual and repetitive

| Task | Why it stays manual |
|---|---|
| Chasing the client for missing records | No tool replaces a person deciding what is missing and asking for it |
| Cleaning platform exports in a spreadsheet | Column layouts differ per platform, change over time, and rarely map cleanly to VAT categories |
| Splitting UK from non-UK sales where the platform export does not | Reported as a specific pain point for eBay **[Anecdotal]** ([AccountingWEB](https://www.accountingweb.co.uk/any-answers/what-are-the-biggest-pains-of-e-commerce-clients)) |
| Building the stock and cost of goods sold working | Sellers rarely track unit costs, so the accountant reconstructs from purchase invoices and counts |
| Fixing client-prepared bookkeeping | Wrong accounts, wrong dates, muddled bank accounts **[Anecdotal]** ([AccountingWEB](https://www.accountingweb.co.uk/any-answers/online-bookkeeping-used-by-clients-nightmare)) |
| Investigating unmatched items one by one | Each one is a small research task |
| Re-mapping when a platform changes its fee structure or billing entity | See the Amazon change of 1 August 2024 |
| Incomplete-records reconstruction | Working sales or purchases back from opening balances, cash received and closing balances. The classical technique is well documented **[Confirmed as a technique]** ([ACCA technical article on incomplete records](https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f3/technical-articles/incomplate-records.html)) |

### 7.2 Judgement, not process

| Judgement | What is at stake |
|---|---|
| **Is this trading?** | Decides whether there is any tax obligation at all. HMRC gives a principle, not a formula **[Confirmed principle]** ([GOV.UK](https://www.gov.uk/guidance/selling-goods-or-services-on-a-digital-platform)) |
| **Trading income or capital disposal?** | A personal possession sold for more than £6,000 sits in Capital Gains Tax rather than trading **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms)) |
| **Cash basis or accruals?** | Cash basis is the default from 2024-25; electing out changes how stock, debtors and interest are treated **[Confirmed]** ([GOV.UK](https://www.gov.uk/simpler-income-tax-cash-basis/cash-basis-changes-from-the-2024-to-2025-tax-year)) |
| **Business or private proportion?** | Home as office, phone, vehicle, and stock bought that the family then used |
| **Is missing evidence acceptable?** | Whether to claim a cost supported only by a bank line |
| **Stock valuation** | Cost, and whether unsold or obsolete stock should be written down |
| **VAT treatment** | Place of supply, zero rating, margin scheme for second-hand goods, whether the marketplace or the seller accounts for the VAT, whether overseas VAT must be excluded from the UK return |
| **When registration is triggered** | Watching the rolling twelve-month total against £90,000 and the 30-day forward test **[Confirmed]** ([GOV.UK](https://www.gov.uk/vat-registration/when-to-register)) |
| **Whether the figures are reliable enough to file** | The final professional decision, and the one that carries the accountant's name |

---

## 8. Seller and accountant responsibilities

| Responsibility | Whose | Category |
|---|---|---|
| Keep records of all sales, income and business expenses, with supporting evidence | Seller | **Legal requirement** ([GOV.UK](https://www.gov.uk/self-employed-records/what-records-to-keep)) |
| Keep digital records and file quarterly updates and a final declaration where MTD for Income Tax applies | Seller, usually performed by the agent | **Legal requirement** ([GOV.UK](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax)) |
| Keep VAT records digitally with digital links, and file VAT returns through compatible software | Seller, usually performed by the agent | **Legal requirement** ([VAT Notice 700/22](https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat)) |
| Register for VAT when the threshold is crossed | Seller | **Legal requirement** ([GOV.UK](https://www.gov.uk/vat-registration/when-to-register)) |
| Tell HMRC about trading income above the £1,000 trading allowance | Seller | **Legal requirement** ([GOV.UK](https://www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms)) |
| Confirm the accuracy of the return and approve it before submission | Seller | **Legal requirement in substance**, since the return is the taxpayer's; **[Interpretation]** on the mechanics |
| Provide context that only the seller knows | Seller | **Common practice**, but without it the accountant cannot finish |
| Obtain agent authorisation before acting | Accountant | **Legal requirement** ([GOV.UK](https://www.gov.uk/guidance/authorise-an-agent-to-deal-with-certain-tax-services-for-you)) |
| Prepare, reconcile, review and submit | Accountant | **Common practice** under the engagement |
| Keep working papers and a defensible audit trail | Accountant | **Common practice** plus professional body requirements |
| Advise on registration thresholds and obligations | Accountant | **Professional judgement** |

---

## 9. Typical working papers and final outputs

### 9.1 Working papers (accountant's file, retained by the practice)

- Records-received checklist and triage notes
- Cleaned platform export files, alongside the untouched originals
- Platform clearing account reconciliation, per platform, per period
- Bank reconciliations for every account, including payment processors
- Sales summary reconciled to platform gross sales and, where relevant, to the platform's HMRC-reported figures
- Fee analysis by fee type
- Refunds and chargebacks schedule
- Stock and cost of goods sold working
- Fixed asset and capital allowances schedule
- Expense analysis with the treatment of anything private or disallowable
- VAT workings, including any country split and any overseas VAT excluded
- Query list with the seller's answers
- Review notes and sign-offs
- Nominal ledger and trial balance

### 9.2 Final outputs

| Output | Who it goes to | Applies to |
|---|---|---|
| Quarterly updates (totals per income and expense category, cumulative from the start of the tax year) | HMRC | Sole traders and landlords within MTD for Income Tax **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates)) |
| Final declaration after the year end | HMRC | Same population |
| Self Assessment tax return (SA100 with SA103 for self-employment) | HMRC | Sole traders |
| Partnership return (SA800) plus each partner's own return | HMRC | Partnerships |
| VAT return, filed through compatible software | HMRC | VAT-registered businesses. Deadline is generally one calendar month and seven days after the end of the VAT period **[Confirmed]** ([GOV.UK](https://www.gov.uk/vat-returns/deadlines)) |
| Statutory accounts | Companies House, generally within nine months of the year end | Limited companies **[Confirmed]** ([GOV.UK](https://www.gov.uk/prepare-file-annual-accounts-for-limited-company)) |
| Company Tax Return (CT600) with accounts and computation | HMRC, within twelve months of the accounting period end, with tax payable nine months and one day after the period end | Limited companies **[Confirmed]** (same source) |
| Accounts or an income and expenditure summary for the seller | Seller | **Management information**, not a filing requirement for unincorporated businesses |
| Tax computation and payment schedule | Seller | Common practice |

### 9.3 What the seller sees and approves

**Common practice:** the seller reviews and approves the draft accounts and the tax return or VAT return before submission, and signs or gives written confirmation. For companies, the directors formally approve the statutory accounts. What HMRC receives in a quarterly update is only category totals, not the underlying receipts and invoices. **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates))

---

## 10. Differences between seller types and reporting obligations

### 10.1 By type of seller

| Seller type | What is different about the records | What is different about the work |
|---|---|---|
| **Casual seller clearing personal items** | Platform data only; no purchase records because the items were personal | The main task is establishing that there is no trade. May still need a Capital Gains check on items over £6,000 **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms)) |
| **Side business alongside employment** | Mixed personal and business banking is near-universal; records are thin | Separating business from private activity dominates. Employment income must be brought into the same return |
| **Reseller (charity shops, car boots, auctions, liquidation)** | Many small cash purchases with little or no evidence; stock is heterogeneous with no unit costing | Stock and cost of goods sold is the hardest area. The second-hand margin scheme may be relevant for VAT-registered resellers **[Interpretation]** on prevalence |
| **Handmade seller** | Materials bought in small amounts from many suppliers; work in progress; time is not a cost | Splitting materials between sold and unsold items; deciding what is stock; heavy receipt-chasing |
| **Established multi-platform seller** | High volume, multiple settlement streams, advertising, imports, sometimes overseas VAT registrations | Connector setup and mapping; VAT country splits; excluding overseas VAT from the UK return **[Practitioner]** ([ICAEW](https://www.icaew.com/technical/practice-resources/support-for-business-advisers/develop-advisory-services/advising-on-ecommerce)) |
| **Partnership** | Same trading records, plus the partnership agreement and profit-sharing basis | A partnership return plus individual returns. Partnerships are not yet within MTD for Income Tax, with no date currently set **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax)) |
| **Limited company** | Same trading records, plus director loan account activity, payroll and dividends | Accruals accounting is required, so stock, debtors and creditors matter. Statutory accounts and a CT600, filed to Companies House and HMRC. Companies are outside MTD for Income Tax |

### 10.2 By volume, platforms and bookkeeping quality

| Variable | Effect on the workflow |
|---|---|
| **Low volume** | Often handled entirely in a spreadsheet from platform exports and bank statements. Connectors may not be worth the cost |
| **High volume** | Individual order posting becomes impractical; settlement-level summarised posting is the norm **[Practitioner]** |
| **One platform** | One reconciliation stream; comparatively straightforward |
| **Several platforms** | Each has its own report formats, fee names, payout rhythm and VAT quirks; the reconciliation multiplies and a clearing account per platform becomes necessary |
| **Good client bookkeeping** | The accountant reviews and adjusts rather than builds |
| **Poor or client-attempted bookkeeping** | Often slower than starting from scratch, because errors must be found before they can be fixed **[Anecdotal]** ([AccountingWEB](https://www.accountingweb.co.uk/any-answers/online-bookkeeping-used-by-clients-nightmare)) |
| **No bookkeeping at all** | Incomplete-records reconstruction from bank statements and platform data |

### 10.3 By reporting obligation

| Situation | What changes |
|---|---|
| **Below the trading allowance** | No requirement to tell HMRC about that income **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms)) |
| **In Self Assessment, not VAT-registered, not in MTD** | Annual cycle. Records must be kept but the format is flexible |
| **In MTD for Income Tax** | Records must be digital and must include amount, date and category for each transaction. Where turnover for that income source is below £90,000, a simplified approach is allowed under which a sole trader need only record whether a transaction is income or expense. Retailers may record daily gross takings instead of individual sales. Quarterly updates are due 7 August, 7 November, 7 February and 7 May, are cumulative from the start of the tax year, and do not require accounting or tax adjustments. A calendar-quarter election is available. **[Confirmed]** ([Keep digital records](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/keep-digital-records), [Send quarterly updates](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates)) |
| **VAT-registered** | Quarterly VAT returns through compatible software, digital records, digital links between systems, and a country and rate split on sales. Registration is triggered at £90,000 on a rolling twelve-month basis or on the 30-day forward test **[Confirmed]** ([GOV.UK](https://www.gov.uk/vat-registration/when-to-register), [VAT Notice 700/22](https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat)) |
| **Selling goods located overseas, or an overseas seller** | The marketplace may be the deemed supplier and account for the VAT, particularly on consignments of £135 or less, which changes what the seller reports **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces)) |
| **Limited company** | Accounts to Companies House and CT600 to HMRC on the deadlines in 9.2; outside MTD for Income Tax **[Confirmed]** |

### 10.4 The retail daily gross takings point is worth isolating

Under MTD for Income Tax, retailers may create a digital record of daily gross takings rather than each individual sale. **[Confirmed]** ([GOV.UK](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/keep-digital-records))

**[Interpretation]:** for a marketplace seller with thousands of small orders, this materially reduces what has to be held as a digital record, and it aligns with the summarised settlement posting that connector tools already produce. **[Gap]:** HMRC guidance does not, in the material I reviewed, spell out how "retailer" and "daily gross takings" apply to a marketplace seller whose sales are reported by the platform in settlement batches rather than by day. That is a live interpretive question for practitioners.

---

## 11. Evidence, methodology and sources

### 11.1 Method

Desk research conducted on 5 August 2026. I worked outwards from HMRC and GOV.UK primary guidance to establish what is legally required, then to official platform documentation to establish what data actually exists, then to professional body material, specialist software vendor documentation and practitioner writing to establish what accountants actually do. Where sources disagreed or where only vendor material was available, I have labelled the claim accordingly.

I did not interview practising accountants, and I did not review any real client files. Everything in this report about day-to-day practice is therefore derived from published accounts of practice rather than direct observation.

### 11.2 Confidence by section

| Section | Confidence | Why |
|---|---|---|
| Legal and regulatory obligations (MTD, VAT, Self Assessment, company filing, platform reporting) | High | Direct GOV.UK guidance, quoted and linked |
| What data platforms provide | High | Official Amazon, eBay and Etsy documentation |
| Reconciliation mechanics | Medium to high | Consistent across multiple independent practitioner and vendor sources, but vendor sources have an interest |
| Intake methods and internal practice workflow | Medium | Largely inference from tool documentation and practitioner writing |
| Relative prevalence of any given practice | Low | No survey data found |
| Differences between seller types | Medium | Logical extension of confirmed rules, plus practitioner commentary |

### 11.3 Research gaps

1. **No UK survey data** on how accountants actually receive ecommerce records, what proportion use connectors versus spreadsheets, or how long each stage takes. **[Gap]**
2. **ICAEW and ACCA practice guidance** on e-commerce clients exists but renders through script-driven pages that resisted direct fetching. The substance is reflected here via search extracts and should be verified against the live pages before formal citation. **[Gap]**
3. **Platform report retention windows** (how far back a seller can download settlement data) were not verified per platform and change over time. **[Gap]**
4. **How "daily gross takings" applies to marketplace sellers** under MTD for Income Tax is not addressed directly in the guidance reviewed. **[Gap]**
5. **Current treatment of eBay and Etsy fee VAT** for UK sellers was not verified from official platform documentation to the same standard as the Amazon change. **[Gap]**
6. **Time and cost per client** for ecommerce work versus other small business work. No credible published data found. **[Gap]**
7. **The extent to which HMRC challenges marketplace seller returns** following platform reporting is reported anecdotally but not quantified in the sources reviewed. **[Gap]**

### 11.4 Sources

**HMRC and GOV.UK (primary, confirmed)**

- [Find out if and when you need to use Making Tax Digital for Income Tax](https://www.gov.uk/guidance/find-out-if-and-when-you-need-to-use-making-tax-digital-for-income-tax)
- [Use Making Tax Digital for Income Tax](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax)
- [Use Making Tax Digital for Income Tax: keep digital records](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/keep-digital-records)
- [Use Making Tax Digital for Income Tax: send quarterly updates](https://www.gov.uk/guidance/use-making-tax-digital-for-income-tax/send-quarterly-updates)
- [Penalties for Making Tax Digital for Income Tax](https://www.gov.uk/guidance/penalties-for-making-tax-digital-for-income-tax)
- [Making Tax Digital for VAT (collection)](https://www.gov.uk/government/collections/making-tax-digital-for-vat)
- [VAT Notice 700/22: Making Tax Digital for VAT](https://www.gov.uk/government/publications/vat-notice-70022-making-tax-digital-for-vat/vat-notice-70022-making-tax-digital-for-vat)
- [Record keeping (VAT Notice 700/21)](https://www.gov.uk/guidance/record-keeping-for-vat-notice-70021)
- [VAT registration: when to register](https://www.gov.uk/vat-registration/when-to-register)
- [VAT returns: deadlines](https://www.gov.uk/vat-returns/deadlines)
- [Business records if you're self-employed](https://www.gov.uk/self-employed-records)
- [What records to keep](https://www.gov.uk/self-employed-records/what-records-to-keep)
- [Cash basis changes from the 2024 to 2025 tax year](https://www.gov.uk/simpler-income-tax-cash-basis/cash-basis-changes-from-the-2024-to-2025-tax-year)
- [Check if you need to tell HMRC about your income from online platforms](https://www.gov.uk/guidance/check-if-you-need-to-tell-hmrc-about-your-income-from-online-platforms)
- [Selling goods or services on a digital platform](https://www.gov.uk/guidance/selling-goods-or-services-on-a-digital-platform)
- [Reporting rules for digital platforms](https://www.gov.uk/guidance/reporting-rules-for-digital-platforms)
- [VAT and overseas goods sold to customers in the UK using online marketplaces](https://www.gov.uk/guidance/vat-and-overseas-goods-sold-to-customers-in-the-uk-using-online-marketplaces)
- [Prepare and file annual accounts for a limited company](https://www.gov.uk/prepare-file-annual-accounts-for-limited-company)
- [Authorise an agent for taxes that use the digital handshake](https://www.gov.uk/guidance/authorise-an-agent-to-deal-with-certain-tax-services-for-you)
- [Sign up your client for Making Tax Digital for Income Tax](https://www.gov.uk/guidance/sign-up-your-client-for-making-tax-digital-for-income-tax)
- [Authorising an agent to deal with your tax affairs](https://www.gov.uk/guidance/authorising-an-agent-to-deal-with-your-tax-affairs)

**Platform documentation (official)**

- [Amazon SP-API: settlement report types](https://developer-docs.amazon.com/sp-api/docs/report-type-values-settlement)
- [Amazon Seller Central: payment date range transaction and summary reports](https://sellercentral.amazon.com/help/hub/reference/external/G200989190?locale=en-US)
- [eBay: reconciling your eBay sales transactions](https://www.ebay.com/help/selling/fees-credits-invoices/reconciling-ebay-sales-transactions?id=4847)
- [eBay: earnings report](https://www.ebay.co.uk/help/selling/fees-credits-invoices/reconciling-ebay-sales-transactions/earnings-report?id=5481)
- [eBay: UK digital sales reporting](https://www.ebay.co.uk/help/account/regulatory/sales-reporting/uk-digital-sales-reporting?id=5454)
- [eBay Finances API overview](https://developer.ebay.com/api-docs/sell/finances/overview.html)
- [Etsy: how to manage your payment account](https://help.etsy.com/hc/en-us/articles/115015747228-How-to-Manage-Your-Payment-Account)
- [Etsy: how to download a spreadsheet of your sold transactions](https://help.etsy.com/hc/en-us/articles/360000343328-How-to-Download-a-Spreadsheet-of-Your-Sold-Transactions)

**Professional bodies**

- [ICAEW: advising on e-commerce](https://www.icaew.com/technical/practice-resources/support-for-business-advisers/develop-advisory-services/advising-on-ecommerce)
- [ICAEW: acting for e-commerce clients successfully](https://www.icaew.com/technical/practice-resources/support-for-business-advisers/develop-advisory-services/acting-for-ecommerce-clients-successfully)
- [ACCA: incomplete records technical article](https://www.accaglobal.com/gb/en/student/exam-support-resources/fundamentals-exams-study-resources/f3/technical-articles/incomplate-records.html)

**Practitioner and specialist software sources (labelled as such in the text)**

- [EcomCPA: the payout reconciliation gap](https://ecomcpa.com/the-payout-reconciliation-gap-why-amazon-shopify-and-tiktok-shop-deposits-are-wrecking-ecommerce-books-in-2026/)
- [A2X: what is A2X](https://www.a2xaccounting.com/ecommerce-accounting-hub/what-is-a2x)
- [A2X: Amazon VAT changes August 2024](https://www.a2xaccounting.com/blog/amazon-vat-changes-august-2024)
- [A2X: Xero and Amazon bookkeeping](https://www.a2xaccounting.com/ecommerce-accounting-hub/xero-and-amazon-bookkeeping)
- [Link My Books: how to reconcile Amazon settlement invoices with bank deposits in Xero](https://help.linkmybooks.com/en/articles/8081615-how-to-reconcile-amazon-settlement-invoices-with-bank-deposits-in-xero)
- [Armstrong Watson: new Amazon VAT charges](https://www.armstrongwatson.co.uk/news/2024/06/new-amazon-vat-charges-what-uk-sellers-need-know)
- [Synder: reconciling Amazon transactions in Xero](https://synder.com/blog/how-to-reconcile-amazon-transactions-in-xero/)
- [eightx: Xero bookkeeping for Amazon FBA](https://eightx.co/blog/xero-bookkeeping-amazon-fba)
- [eightx: Dext vs Hubdoc](https://eightx.co/blog/dext-vs-hubdoc-receipt-capture)

**Anecdotal**

- [AccountingWEB Any Answers: biggest pains of e-commerce clients](https://www.accountingweb.co.uk/any-answers/what-are-the-biggest-pains-of-e-commerce-clients)
- [AccountingWEB Any Answers: online bookkeeping used by clients](https://www.accountingweb.co.uk/any-answers/online-bookkeeping-used-by-clients-nightmare)